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SoundHound AI Inc (NASDAQ:SOUN) shares dropped more than 9% after-hours despite the company reporting better-than-expected Q4 results, with EPS coming in at ($0.15), compared to the consensus estimate of ($0.17).
Revenue grew 84% year-over-year to $9.5 million, beating the consensus estimate of $8.74M. At the end of 2022, the cumulative bookings backlog was $332M, which represents a 59% year-over-year increase.
“We have taken the necessary steps to significantly improve our operating efficiency, strengthen our financial foundation, and we have a clear line of sight to near-term profitability and sustained long-term growth,” said Nitesh Sharan, CFO of SoundHound.
For fiscal 2023, the company expects revenue in the range of $43-50M (approximately 50% year-over-year growth at the midpoint), compared to the consensus of $46.05M.
With this growth, and previously announced restructuring, which is estimated to result in approximately $60M of operating cost savings, the company expects to become adjusted EBITDA positive in Q4/23.
